Sustainable development and socially responsible business practices in transition countries

Sustainable development and corporate social responsibility (CSR) represent two interconnected concepts that are gaining increasing importance in modern economic systems, particularly in transition countries that are undergoing processes of institutional transformation, market liberalization, and adaptation to global economic standards. Transition countries face specific challenges such as economic instability, underdeveloped institutions, high unemployment rates, environmental problems inherited from previous industrial models, and limited capacities for implementing sustainable policies. In such an environment, the integration of sustainable development principles and corporate social responsibility becomes an important instrument for enhancing business competitiveness, strengthening social cohesion, and protecting the environment. The aim of this paper is to analyze the relationship between sustainable development and corporate social responsibility (CSR) in transition countries, with a focus on theoretical foundations, institutional frameworks, and practical examples of implementation. Particular emphasis is placed on the role of companies in balancing economic objectives with social and environmental responsibilities. The paper combines theoretical approaches with an analysis of specific business practices from Central and Eastern European countries, including Serbia. The methodological approach is based on the analysis of secondary data sources, a comparative analysis of relevant literature, and case studies of selected companies that implement CSR principles. The research results indicate that corporate social responsibility can represent a significant mechanism for implementing sustainable development goals, but its effectiveness in transition countries depends on the regulatory environment, the level of institutional development, stakeholder pressure, and the organizational culture of enterprises.